1. Keep your workers safe
Meanwhile, furloughed employees — used to seeing team members every day — may need support to help stay engaged and keep their skills current. From digital upskilling to seamless virtual communications, the technology exists to help employees stay connected during this challenging time.
Covid-19: Top 3 workforce considerations:
2. Choose the mix of funding that works for your company
- Buying back shares
- Raising executive compensation
- Furloughing or laying off workers (Under the Payroll Protection Program, funds have certain restrictions. For example, they are required to be used for payroll and other monthly expenses such as rent.)
If you’ve already had to furlough workers, you may still be able to qualify if you re-onboard them within a certain timeframe. Some loans may also require collateral and interest, with rates similar to market rates.
Despite these limitations, the grants and loans provided by the CARES Act can be essential for the viability of many TTH companies. Meanwhile, self-funding and external funding can also help play a role. Some of the tax benefits of the CARES Act — such as the change in business interest expense deductions — can help to reduce borrowing costs significantly.
3. Provide support for franchisees
TTH companies can set up a system to help monitor progress on CARES Act applications for their franchisees. This may provide support as needed, while also helping supply updated communications to stakeholders and the government.